JAKARTA – Jakarta Composite Index (JCI) still has the potential to rebound, returning to break the 7,000 level, despite a 6.80% decline since the start of the year.

On Monday’s trading, JCI weakened again by 0.57% or 37.79 points to 6,598.21, following a 5.83% gain last week.

Liza Camelia Suryanata, Head of Equity Research at Kiwoom Sekuritas Indonesia, stated that the feasible resistance level for JCI in the short term and psychologically is indeed around 7,000. "We are trying to remain slightly optimistic amid the currently gloomy atmosphere," said Liza, as confirmed by IDNFinancials.com.

This outlook is still considered plausible, according to Liza. “Considering that funds or investment managers may try to polish their portfolios at the end of the quarter.”

However, JCI’s rebound prospects still face several risks, ranging from the downgrades by foreign institutions like Goldman Sachs and Morgan Stanley to the widening fiscal deficit challenges.

“Not to mention, regional market sentiment like Trump's Tariffs consistently creates uncertainty in the market,” Liza added.

For JCI to strengthen to the 7,000 level by the end of Q1 2025, Liza believes it needs to be driven by the Finance (Banking) sector, which can significantly move the index.

Some of the stocks expected to support JCI’s rise include PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank Central Asia Tbk (BBCA), PT Bank Mandiri (Persero) Tbk (BMRI), and PT Bank Negara Indonesia (Persero) Tbk (BBNI).

Key resistance levels that need to be broken for BBRI shares are in the 4,000-4,050 range, with a target of IDR 4,500. BBCA’s resistance is at 9,000 before aiming for IDR 9,300 to IDR 9,400 per share.

Meanwhile, important resistance for BMRI and BBNI stocks is at 5,000 and 4,600, respectively, with expected prices of IDR 5,400-5,500 per share for BMRI and IDR 4,800 or IDR 5,000 per share for BBNI. (KR/ZH)